Correct Answer:
A. Audit sampling
COSO components are control environment, risk assessment, control activities, information and communication, and monitoring.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
Which of the following is NOT a component of internal control in the COSO framework?
Related MCQs
Which of the following is an example of a substantive procedure?
A.
Sending confirmation requests to a sample of customers
B.
Observing segregation of duties in the purchasing department
C.
Inquiring about the approval process for payments
D.
Walking through the payroll system
Correct answer is:
A. Sending confirmation requests to a sample of customers
Do you agree with this answer?
Stock audit in a government department is intended to:
A.
Verify the physical existence and proper record of stores and stock
B.
Count cash in the treasury
C.
Check payroll only
D.
Verify tax assessments
Correct answer is:
A. Verify the physical existence and proper record of stores and stock
Do you agree with this answer?
Under IAS 37, a provision is recognized when:
A.
There is a present obligation from a past event, an outflow is probable and a reliable estimate can be made
B.
A future loss is merely possible
C.
The management plans to spend money someday
D.
The auditor requires it
Correct answer is:
A. There is a present obligation from a past event, an outflow is probable and a reliable estimate can be made
Do you agree with this answer?
The quick (acid test) ratio excludes which item from current assets?
A.
Inventory
B.
Cash
C.
Trade receivables
D.
Short-term investments
Correct answer is:
A. Inventory
Do you agree with this answer?
Total debt is Rs. 400,000 and total equity is Rs. 200,000. The debt-to-equity ratio is:
A.
0.5
B.
2.0
C.
1.5
D.
3.0
Correct answer is:
B. 2.0
Do you agree with this answer?
Financial independence of a Supreme Audit Institution means that:
A.
It has adequate resources and control over its budget to perform its mandate
B.
It is financed by the audited entities
C.
It has no budget
D.
It depends on ministers for funds each month
Correct answer is:
A. It has adequate resources and control over its budget to perform its mandate
Do you agree with this answer?
Leave a Reply